If autonomous expenditures increased by $10 billion, what is the change in aggregate demand at a given price level if the MPC to consume is 0.8?
a. increase by $50 billion
b. increase by $100 billion
c. decrease by $100 billion
d. decrease by $10 billion
a
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The application of Solow's growth theory to the explanation of the slowdown in productivity growth in the United States suggests that the slowdown is primarily caused by
A) reduced growth in the capital stock per hour of work. B) reduced growth in the technical change or total factor productivity. C) slow residual growth of the capital stock. D) ignorance since people save and invest less.
The modern monetarists believe that
A. V is very unstable. B. V never changes. C. Any changes in V are either very small or predictable. D. If M rises, V will fall by the same percentage.
If the economy is operating on the long-run aggregate supply curve, then expansionary fiscal policy will
A) generate higher prices in the short run, but will induce aggregate supply to increase in the long run. B) generate an increase in real GDP and higher prices in the short run, but then real GDP will decrease to its long-run level, and the price level will increase some more. C) generate an increase in real GDP without higher prices in the short run, but then real GDP will return to its long-run level, and the price level will increase. D) generate an increase in real GDP and higher prices in both the short run and the long run.
When a monopolist is able to sell its product at different prices to different customers, it is likely engaging in: a. quality-adjusted pricing. b. price discrimination
c. price differentiation. d. illegal activities.